Question $7(5$ points$)$

You work for a bank, which also gives home mortgages to its clients. Your team is asked to use Nearest Neighbor approach to make this decision for an important client John$\_$Jill.

In the table below, your team has calculated the distance of John$\_$Jill from other neighbors. Your team used Income, Residence and Act$\_$balance to calculate the distance $($Do not worry about the actual value of the variable. Only focus on the distance$)$

Part $1)(2$ points$)$ If you use $5$ NN $,$ what will be your decision? Why?

Part $2)(2$ points$)$If you used $4$ NN $,$ what will be decision? Why?

Pact $3)(1$ point$)$ Can you come up with a solution to provide a concrete answer for Part $2?$